The trap of contradictory forces.

Between the Obama regime and the FED we have been placed between a rock and a hard place. The Obama regime is pushing for an ever increasing government handout to get votes and to get even with white society. That puts us into deficits. The FED tries to compensate by lowering interest rates.

Lowering interest rates is supposed to increase industrial activity. Lower interest rates allow corporations to barrow money cheaply and buy back their stock. This creates higher stock prices. According to Keynesian economics, higher stock prices are supposed to create a wealth effect: a trickling down of wealth. Government also soaks up the new money being printed, so the stimulatory effect is mush less then hoped for.

Now comes the dilemma: in order to make the banks more secure, the FED needs to increase interest rates so the banks can earn more. This can not be done for the following reason: Higher interest rates would reduce corporate spending, reduce PE values and crash the Stock Market. The other part of the problem is that in order to counteract the effect of money printing, gold prices are artificially suppressed to reduce inflation. We also have an effect on corporations: the high corporate tax is driving companies overseas.

The cumulative effect is horrible: 1. cities going broke (their industry is leaving and tax base shrinks); 2. banks get weaker and may need bailouts; 3. industry is suffering; 4. we have deflation.

The Elite refuse to recognize that doing what creates the problem will not solve the problem and that doing even more of what creates the problem is not going to work either. So, there we are. Those who have ill will for our Country are overjoyed. And the Country suffers.